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Dec 31, 2023
RBI Q4 2023 Earnings Report
Restaurant Brands International reported Q4 2023 results with revenue growth driven by system-wide sales increases across all segments and strategic investments.
Key Takeaways
Restaurant Brands International (RBI) reported strong Q4 2023 results, with global system-wide sales growing nearly 10% and comparable sales up nearly 6%. The company is focused on delivering better experiences for guests and profitability for franchisees, while making long-term investments for growth. RBI reported total revenues of $1.82 billion and net income of $726 million for the quarter.
Global system-wide sales grew nearly 10% in Q4 2023.
Comparable sales increased by nearly 6%, driven by Tim Hortons Canada and Burger King US.
Digital sales grew over 20% year-over-year, reaching $14 billion in 2023.
Home market franchisee profitability increased 30% year-over-year, on average.
Revenue by Segment
Forward Guidance
RBI provided forward-looking statements regarding macroeconomic pressures, digital and marketing initiatives, franchisee contributions, remodel programs, net leverage targets, and dividend targets for 2024.
Positive Outlook
- Expectations regarding the effects and continued impact of the macro-economic pressures, such as inflation, rising interest rates and currency fluctuations, on our results of operations, business, liquidity, prospects and restaurant operations and those of our franchisees
- Expectations regarding further expenditures relating to digital, marketing, remodel and technology enhancement initiatives, including our “Reclaim the Flame” plan to accelerate sales growth and drive franchisee profitability at Burger King
- Expectation that franchisee contributions to the ad fund will increase in 2025
- Expectations around Royal Refresh investments and remodel program
- Confidence of reaching target net leverage
Challenges Ahead
- Risks related to franchisees financial stability and their ability to access and maintain the liquidity necessary to operate their business
- Risks arising from macroeconomic conditions, including inflation and raising interest rates and its impact on discretionary spending
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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